Andhra Pradesh - Visakhapatnam

IT units on collision course with govt. agencies

VISAKHAPATNAM: Software companies at Rushikonda and the government agencies are on collision course following the action of the AP Industrial Infrastructure Corporation (APIIC) in suspension of power supply immediately.

The APIIC (special projects zone) informed the Superintending Engineer, EPDCL, in a letter on November 21 that power supply be disconnected under Section 19 (3) of SEZ rules, 2006 due to construction of buildings in the IT SEZ without necessary approvals.

The APIIC contention is that the entrepreneurs holding Letters of Approval (LoA) are entitled to set up units in the processing area of SEZ and commence production within a year from getting the approval.

In a recent communication, the Development Commissioner of Visakhapatnam Special Economic Zone (VSEZ), who is also in-charge of 100 per cent EoUs, declared constructions without LoA as unauthorised.

The notices issued by VSEZ and APIIC were served to eight companies viz. Colorchips Entertainments and Media Ltd, Symbiosys Technologies, Sankhya Technology, Mahathi Software, Navayuga Infotech, Soft Pro Systems, NuNet Technologies and CAN Infotech. Some of them have completed their constructions and employed hundreds of techies on their payrolls.

Highly placed sources told The Hindu that the EPDCL SE wrote individual letters dated November 29 to the software companies referring the instructions received from APIIC and asked them to produce proof of LoA within 15 days failing which he threatened to stop power supply.

The promoters of the units, APIIC and VSEZ are on a confrontation ever since the Ministry of Commerce issued a notification announcing an IT SEZ at Rushikonda last year.

The promoters, who bought the lands at Rushikonda two and half years ago on payment of Rs.10 lakh an acre, refused surrender of sale deeds and convert their status as owner to lease-holder.

Their petition for denotifying the IT SEZ is under consideration of Ministry of Commerce as they contended that they bought and began constructions before the said notification and the APIIC had produced wrong information stating that it was the owner and in possession of the land in question.

“We will be forced to subject the SEZ notification to legal scrutiny if our demand is not considered.

We are harassed with threat of blackout after developed the facilities with out hard-earned money,” Rushikonda IT Park Association vice-president Naresh Kumar said.

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